EUR/USD Daily Chart
PMI data from France and Germany was certainly impressed, even if they still reflect the quite lukewarm economic situation. Even if there is a little concern about the price pressure with a more modest performance, a more modest performance needs to reduce the rate by putting ECB on the track. For now, ECB can definitely escape by ignoring it.
Before the data, EUR/USD traded about 1.0450 for a softer dollar. However, after that, I found that the price was fine -tuned to clip the 1.0500 mark. Some additional dollars are some of them, but the better Euro area PMI data does not hurt the appearance of today's single currency.
Since the pair runs the best in 5 weeks, it is a break that is more than a short-term resistance in the 1.0430-50 region, and has a stronger retribution. At the 1.0500 level, there should be some offers. However, from a technical point of view, the 1.0572 38.2 FIB retracement level should be careful before the next 2.0600 resistance area works.
If it appears later, there is a PMI data to add to the mix. However, as things come up, it is to hit the dollar because Trump's tariffs may decline.
Next week, there will be a Fed and ECB policy decision to control the procedure. However, he has not excluded Trump's headlines, as he continues to speak after his inauguration ceremony this week.
